₦airaland Forum

The price of crude oil has crashed internationally but why has Dangote not reduced the prices of his petroleum products? Because I noticed that when it was increased internationally he immediately increases his price but now that it's dropping why has he not followed suit

Because he is a monopolist and an opportunist...

Dangote is a lot of people's role model but unfortunately he is a con business man.

It doesn't happen so sudden at local market.

kaywhy09:
It doesn't happen so sudden at local market.

But when it's increased it happens so sudden at the local market, is that not double standard

I think the straith of Humoz was closed again

Nonetheless, Dangote is really cashing out of our misery

Why are the people not even asking Tinubu and the APC why the NNPC is still not working having claimed otherwise all through last year?
What happened to the huge amount of money spent on the so-called turnaround maintenance?
Tinubu is the Minister of Petroleum as it is, if not for Dangote, I can bet we'll be buying fuel for as high as ₦2,500 per litre. The builder of Lagos State prioritized his interest in the Lagos-Calabar Coastal highway, neglecting other sectors like Power, Security, and Oil & Gas and the economy.

Kudos to Dangote for saving Nigerians in the hands of this evil government and its political party, the APC.

The strait of Hormuz is not yet open oooo
Iran opened it, and later closed it again after USA refused to lift its blockade

Malcolm21:
The price of crude oil has crashed internationally but why has Dangote not reduced the prices of his petroleum products? Because I noticed that when it was increased internationally he immediately increases his price but now that it's dropping why has he not followed suit

Situation around the strait of Hormuz hasn't changed. Iran has closed the strait again and US is still blockading Iranian ports.

An Indian ship which tried to pass was fired on by the Iranians. And India and Iran are supposed to be at peace with each other self

Oil prices may still jump up as a result. And even if the strait was fully opened tomorrow and USA stopped blockading Iran, the oil price would take a while to stabilise.

So fuel prices may be high for now

The strait is now closed again


So what do u think?

It shall not be well with Dangote,

Na cashing out season Dangote dey.

Malcolm21:
The price of crude oil has crashed internationally but why has Dangote not reduced the prices of his petroleum products? Because I noticed that when it was increased internationally he immediately increases his price but now that it's dropping why has he not followed suit

Is the Straight of Hormuz open? See the Punch newspaper page you posted. Where did you get your information about the price of oil dropping in the internationalarket?

20 more characters needed

JealousCobra:
Dangote is a lot of people's role model but unfortunately he is a con business man.

Well if most of you had not supported the Ojota crowd back in 2011 , we could have had more refineries by now.

Subsides essentially made it difficult for anyone else to get into the refining business back then unless you had deep pockets like.dangote

Malcolm21:
The price of crude oil has crashed internationally but why has Dangote not reduced the prices of his petroleum products? Because I noticed that when it was increased internationally he immediately increases his price but now that it's dropping why has he not followed suit

Sometimes what we hear from d media is not always d reality on ground. D tension is still high in that sea. Reality is different from pressmedia

Well, the op is right to a large extent. However, I still wouldn't blame Dangote. He's a business man.

Why is it that, of all the people that have been given the license to build refineries,none of them have started anything?

Dangote could do this freely just because there are no stiff competition from anywhere despite being the 6th largest oil producing country in the world.

Imagine having about 10 other refineries of same magnitude or even bigger, scattered around the country, why would he not comply?

It's not as if we don't have people who have such money to build but the greed and the immediate gain mentality would not allow us do the right thing.

...and as a result, we all bear the consequences of our inactions.

EnemyofGod4:
It shall not be well with Dangote,

If you were running a business , you won't set your prices based on what the customer wants , but what your business needs to survive.

From your comment , you've never run a business

Dangote na full 100% capitalist wey like monopoly pass anything

During Jonathan Oil sold over $100
During Jonathan Oil sold over $100
During Jonathan Oil sold over $100
During Jonathan Oil sold over $100
During Jonathan Oil sold over $100
During Jonathan Oil sold over $100
During Jonathan Oil sold over $100

What this useless and clueless APC government was chorusing all through

Now we have seen oil spike over $100, they have gone dumb. We don’t know what the excess is, they removed subsidy too

NO EFFECT

Show me a more useless government

Use the same strength to ask your President what led to the sudden collapse of production by the Refineries they were celebrating last year as achievement?

They gat money for war but can't feed d poor
Up for grab

Dangote has always been a monopolist

That is nigeria mehn. It's not new 🤕

Dangote group of criminals, he can never change... The man is one the problems of Nigeria. He's very greedy in business..

no

yemre:
Well, the op is right to a large extent. However, I still wouldn't blame Dangote. He's a business man.

Why is it that, of all the people that have been given the license to build refineries,none of them have started anything?

Dangote could do this freely just because there are no stiff competition from anywhere despite being the 6th largest oil producing country in the world.

Imagine having about 10 other refineries of same magnitude or even bigger, scattered around the country, why would he not comply?

It's not as if we don't have people who have such money to build but the greed and the immediate gain mentality would not allow us do the right thing.

...and as a result, we all bear the consequences of our inactions.

Subsidy made it difficult for other people to set up refineries back when Dangote was starting his own.

Because of the price controls inherent in subsidy no bank or financial lender would lend money to anyone with a refinery licence. The fact that subsidy was not going to go back then would have made building a refinery high risk

Dangote was able to get loans from the banks and even from CBN because at the end of the day, he had other lucrative businesses and assets. Had he defaulted on his loans because of subsidy price controls limiting his profits potentially, the lender's would have taken over his other businesses and repaid themselves.

That's why subsidy removal back in 2012 or even 1993 would have benefited Nigeria. It would have made lending to refinery licence owners easier because now banks know they would have seen their money back

One of the dangers of monopoly. He was quick to increase but hesitant to reduce it

Remember when He was crying crocodile tears about how d government was frustrating his refinary then

C'mon, you people complain alot

They open strait of hormus yesterday and the price will suddenly crash today haba.

The painful thing is that most people on this forum supported him.

Mind you, US closed it.

Imagine a woman selling rice:
When the price of rice in the market goes up today,
👉 she increases her price immediately so she doesn’t lose money.
But when the price of rice comes down,
👉 she may not reduce her price immediately.
Why? Because:
She still has old expensive rice in her store
She wants to recover the money she already spent...

Dangote still has old expensive stock. So until he sells the old crude oil, he won't be able to reduce the fuel price.

Kindly note that had Tinubu wanted to reduce the hardship caused by the war on Nigerians, there are many ways he could do it. But as usual, he care less about the welfare of the masses

Dangote is like the average Nigerian, when price of inputs are cost they are ready to increase price but when reduced you'll never see them trying to reduce the same price.

This is a psyche thing, it's innate. Dangote is no exception.

Which oil crashed? It is still expensive at my location abroad.

My country of residence has 16 refineries and 4th largest producer of crude oil in the world and petrol has been expensive since the senseless war in Iran.

Infact, I stopped driving my personal car for any work that takes me outside of the city and instead use the company vehicle.